Coke releases new ads, begins promoting reformulated, re-staged Powerade. First ads show humorous extreme sports feats. In one, Atlanta Falcons quarterback Michael Vick "throws" football way over end of field, high into bleacher seats. Ads/strategy appear designed to source volume from consumers of both Gatorade and Mt. Dew with their humorous and extreme feats. Coke aims to carve out position for Powerade that is separate from market leader Gatorade. Coke Americas CEO Jeff Dunn recently notes re-staged Powerade won't be Gatorade "me-too." Coke also hosts New York City event Aug. 14 featuring "fifty gorgeous, athletic models beautifully air-brush-painted from head to toe." Data. In recent IRI food/drug/mass merchandiser data YTD through June 17, Powerade volume up +46%; pricing down -9.7%.
Coke's view. Coke's Powerade brand manager Rohan Oza cites three sources for building Powerade: 1) "category growth." 2) "gaining volume and share from Gatorade based on innovation, marketing and system support." 3) sourcing volume "from other lifestyle beverages." Pricing? Asked whether lower pricing is part of Coke's Powerade strategy, Oza declares: "We'll remain competitively priced with Gatorade."
PepsiCo's view. At Aug. 13 meeting, Bob Morrison -- Quaker Oats CEO and now also PepsiCo vice chairman -- notes: "Recently, we've seen our friends in Atlanta stepping up the pace on Powerade. But all they're doing is lowering the price." Adds, "we've got to see what's going to happen with Powerade's new packaging and flavors, but we're not going to let any competitor slow down Gatorade."
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